This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/04/22/business/live-stock-market-trading-coronavirus.html

The article has changed 42 times. There is an RSS feed of changes available.

Version 11 Version 12
Oil Prices Jump and Stocks Rise: Live Updates Oil Prices Jump and Stocks Rise: Live Updates
(about 1 hour later)
Stocks on Wall Street and in major European markets rallied on Wednesday, and oil prices reversed some of the tremendous losses that had unnerved investors for several days.Stocks on Wall Street and in major European markets rallied on Wednesday, and oil prices reversed some of the tremendous losses that had unnerved investors for several days.
The S&P 500 rose more than 1 percent in early trading, after a nearly 5 percent drop on Monday and Tuesday. The S&P 500 rose nearly 2 percent in early trading, after a nearly 5 percent drop on Monday and Tuesday.
The selling earlier in the week had been triggered by a collapse in oil prices, as the price of one oil benchmark dipped below zero for the first time, meaning some holders were ready to pay people to take a barrel off their hands. The inversion in oil prices reflected disappearing demand for petroleum, and the fact that there are few places left to store all the crude still being pumped. The selling earlier in the week had been triggered by a collapse in oil prices, as the price of one oil benchmark dipped below zero for the first time, meaning some holders were ready to pay customers to take a barrel off their hands. The inversion in oil prices reflected disappearing demand for petroleum, and the fact that there are few places left to store all the crude still being pumped.
But on Wednesday, some stability returned to the energy market, with the price of both West Texas Intermediate crude, the American benchmark, and Brent crude, the international benchmark, sharply higher. Shares of companies in the energy industry, like Halliburton and Marathon Oil, were among the best performing stocks in the S&P 500.But on Wednesday, some stability returned to the energy market, with the price of both West Texas Intermediate crude, the American benchmark, and Brent crude, the international benchmark, sharply higher. Shares of companies in the energy industry, like Halliburton and Marathon Oil, were among the best performing stocks in the S&P 500.
Bond trading also signaled some returning optimism. U.S. Treasury bond prices fell, a signal that investors were turning back to riskier investments.Bond trading also signaled some returning optimism. U.S. Treasury bond prices fell, a signal that investors were turning back to riskier investments.
Those investors had other news to consider. The United States Senate on Tuesday passed a bipartisan $484 billion coronavirus relief package that would replenish a depleted loan program for distressed small businesses and provide funds for hospitals, states and coronavirus testing.Those investors had other news to consider. The United States Senate on Tuesday passed a bipartisan $484 billion coronavirus relief package that would replenish a depleted loan program for distressed small businesses and provide funds for hospitals, states and coronavirus testing.
Tyson Foods said on Wednesday that it would close its largest pork processing facility, the latest in a string of plant closures that has put a strain on the nation’s meat supply. The private equity firm that agreed to buy Victoria’s Secret in February is trying to terminate the deal as the retail chain takes a hit from the coronavirus outbreak.
Sycamore Partners had been planning to buy 55 percent of L Brands, the lingerie chain’s parent company, in a deal that was expected to close by July.
But in a Delaware court filing on Wednesday, Sycamore said that L Brands had breached certain aspects of the agreement and made representations that were now false with its response to the pandemic. L Brands shares plunged by about 20 percent.
In the filing, Sycamore pointed to the temporary closure of nearly all Victoria’s Secret and Pink stores, its furlough of most employees, salary cuts for senior staff and its failure to pay rent on U.S. stores in April. The firm said that Victoria’s Secret was now “saddled” with merchandise of “greatly diminished value.”
“That these actions were taken as a result of or in response to the COVID-19 pandemic is no defense to L Brands’ clear breaches of the transaction agreement,” the firm said.
L Brands, which also owns Bath & Body Works, said in a Wednesday statement that it believed Sycamore’s attempt to terminate the acquisition was “invalid,” and that it planned to “vigorously defend the lawsuit” and work toward a close of the deal.
Rupert Murdoch’s Fox Corporation, the owner of Fox News, announced pay cuts to its executive ranks. Mr. Murdoch’s son, Lachlan, detailed the cuts, which will affect 700 employees, in a companywide memo on Wednesday.
He and his father will forego half of their salaries through September, though most of their compensation comes from stock awards and bonuses. Rupert Murdoch earns $5 million in salary but his compensation tops $29 million with incentives and stock. Lachlan Murdoch’s salary is $3 million, with an additional $20 million coming from stocks and bonuses.
Other high-level executives will also take a 50 percent pay cut, and people who work at the level of vice president will have their salaries reduced by 15 percent from May through July.
Lachlan Murdoch stressed the importance of aiding front-line workers affected by the coronavirus, suggesting ways that employees could help, including “virtual volunteering.” That stands in marked contrast to how the stars of Fox News have talked about the pandemic. Hosts including Jeanine Pirro and Laura Ingraham have promoted anti-social-distancing rallies across the country.
In his memo, Lachlan Murdoch said, “As a company, we have a responsibility in this moment to help each other and those in need and we are using our platforms and resources to inform our viewers and to give back to our audiences.”
Tyson Foods said on Wednesday that it would close its largest pork processing facility, the latest in a string of plant closings that has put a strain on the nation’s meat supply.
The plant in Waterloo, Iowa, had been running at reduced levels in recent days because workers were staying home, the company said.The plant in Waterloo, Iowa, had been running at reduced levels in recent days because workers were staying home, the company said.
Over the last few weeks, meat plants have become major “hot spots” for the coronavirus pandemic, with some reporting widespread illnesses among workers, posing a serious challenge to meat production. Other major meatpackers like Smithfield, JBS and Hormel have also closed plants in recent days.Over the last few weeks, meat plants have become major “hot spots” for the coronavirus pandemic, with some reporting widespread illnesses among workers, posing a serious challenge to meat production. Other major meatpackers like Smithfield, JBS and Hormel have also closed plants in recent days.
Tyson said it would invite the Waterloo plant’s 2,800 workers to be tested for the coronavirus at the facility later this week.Tyson said it would invite the Waterloo plant’s 2,800 workers to be tested for the coronavirus at the facility later this week.
“The closure has significant ramifications beyond our company, since the plant is part of a larger supply chain that includes hundreds of independent farmers, truckers, distributors and customers, including grocers,” the head of Tyson’s fresh meats division, Steve Stouffer, said in a statement.“The closure has significant ramifications beyond our company, since the plant is part of a larger supply chain that includes hundreds of independent farmers, truckers, distributors and customers, including grocers,” the head of Tyson’s fresh meats division, Steve Stouffer, said in a statement.
The company had previously closed another meat plant in Columbus Junction, Iowa, but it reopened the facility on Tuesday. The company had closed another meat plant in Columbus Junction, Iowa, but it reopened the facility on Tuesday.
The Occupational Safety and Health Administration, part of the Labor Department, has announced that there will be few inspections of workplaces for coronavirus hazards aside from those in high-risk activities like health care and emergency response.The Occupational Safety and Health Administration, part of the Labor Department, has announced that there will be few inspections of workplaces for coronavirus hazards aside from those in high-risk activities like health care and emergency response.
Instead, it has called on employers to investigate coronavirus-related issues on their own, even in hot spots such as the food supply chain. That has left a vacuum of oversight in workplaces where the virus is taking a toll, former OSHA officials say.Instead, it has called on employers to investigate coronavirus-related issues on their own, even in hot spots such as the food supply chain. That has left a vacuum of oversight in workplaces where the virus is taking a toll, former OSHA officials say.
“I wish they were more involved,” John Henshaw, who led the agency during the George W. Bush administration, said of OSHA’s role. “Certainly meatpacking — I don’t understand why they wouldn’t emphasize it.”“I wish they were more involved,” John Henshaw, who led the agency during the George W. Bush administration, said of OSHA’s role. “Certainly meatpacking — I don’t understand why they wouldn’t emphasize it.”
At the same time, OSHA has provided few of the incentives, like new workplace rules dealing specifically with infectious disease, that typically prompt employers to address hazards.At the same time, OSHA has provided few of the incentives, like new workplace rules dealing specifically with infectious disease, that typically prompt employers to address hazards.
A Labor Department spokeswoman said that notwithstanding the new enforcement approach, “if OSHA were to find flagrant violations of the law, the agency would use all enforcement tools available.”A Labor Department spokeswoman said that notwithstanding the new enforcement approach, “if OSHA were to find flagrant violations of the law, the agency would use all enforcement tools available.”
The Washington Post reported last week that the agency had received thousands of complaints from workers in a range of industries saying they felt unsafe at work because of the virus. The Washington Post reported last week that the agency had received thousands of complaints from workers in a variety of industries saying they felt unsafe at work because of the virus.
Delta Air Lines reported its first quarterly loss in years. Delta’s shares were slightly higher early Wednesday. Its rival, United Airlines fell, however, after the company said it would sell new shares to raise about $1 billion in additional cash.Delta Air Lines reported its first quarterly loss in years. Delta’s shares were slightly higher early Wednesday. Its rival, United Airlines fell, however, after the company said it would sell new shares to raise about $1 billion in additional cash.
AT&T took a hit from coronavirus in the first quarter with revenue lower by $600 million, mostly because of loss of sports programming at its Turner division. But the company also clawed back some of the licensing fees it paid to the NCAA after the tournament was canceled. The company will try to convert its 35 million HBO subscribers to its streaming service, HBO Max, when it debuts May 27. Its shares were higher on Wednesday morning. AT&T took a hit from the coronavirus in the first quarter with revenue lower by $600 million, mostly because of the loss of sports programming at its Turner division. But the company also clawed back some of the licensing fees it paid to the N.C.A.A. after the tournament was canceled. The company will try to convert its 35 million HBO subscribers to its streaming service, HBO Max, when it debuts May 27. Its shares were higher on Wednesday morning.
Kimberly-Clark saw sales of tissue and toilet paper climb by 13 percent in the first quarter, the company said Wednesday, as consumers stockpiled amid the pandemic. The company reported profit and sales that beat analyst estimates. Its shares climbed about 1 percent.Kimberly-Clark saw sales of tissue and toilet paper climb by 13 percent in the first quarter, the company said Wednesday, as consumers stockpiled amid the pandemic. The company reported profit and sales that beat analyst estimates. Its shares climbed about 1 percent.
Shares of Netflix, however, fell even after it reported first-quarter earnings on Tuesday that showed a surge in demand for the service with stay-at-home orders in place around the world. The company said 15.7 million new customers signed up in the first three months of the year, but it cautioned that the spike in sign-ups meant it might see fewer new subscriptions later in the year. The company’s shares hit a record high last week as investors anticipated the increase in demand.Shares of Netflix, however, fell even after it reported first-quarter earnings on Tuesday that showed a surge in demand for the service with stay-at-home orders in place around the world. The company said 15.7 million new customers signed up in the first three months of the year, but it cautioned that the spike in sign-ups meant it might see fewer new subscriptions later in the year. The company’s shares hit a record high last week as investors anticipated the increase in demand.
Delta Air Lines reported a loss of $607 million between January and March, its first quarterly loss in five years, as the travel industry started to collapse in the wake of the pandemic.Delta Air Lines reported a loss of $607 million between January and March, its first quarterly loss in five years, as the travel industry started to collapse in the wake of the pandemic.
The airline said it ended March with about $6 billion in cash on hand, but added that it was also burning through $100 million in cash per day by the end of that month. After cutting costs and expenses, Delta expects to slow that rate to $50 million per day by the end of June.The airline said it ended March with about $6 billion in cash on hand, but added that it was also burning through $100 million in cash per day by the end of that month. After cutting costs and expenses, Delta expects to slow that rate to $50 million per day by the end of June.
“The decade of work we put into the balance sheet to lower debt and build unencumbered assets has been critical to our success in raising capital and we expect to end the June quarter with approximately $10 billion in liquidity,” said Paul Jacobson, the chief financial officer, in a statement. On Tuesday, Delta announced that Mr. Jacobson had reversed his decision to retire in order to help guide the airline through the crisis.“The decade of work we put into the balance sheet to lower debt and build unencumbered assets has been critical to our success in raising capital and we expect to end the June quarter with approximately $10 billion in liquidity,” said Paul Jacobson, the chief financial officer, in a statement. On Tuesday, Delta announced that Mr. Jacobson had reversed his decision to retire in order to help guide the airline through the crisis.
Under the stimulus passed last month, Delta received $5.4 billion in grants and loans to pay its employees. It said it is also eligible for a $4.6 billion loan under the law, should it decide to take it. The airline also said it plans to cut schedules by 85 percent in the second quarter, in line with competitors like United Airlines, which reported a $2.1 billion quarterly loss on Monday. Under the stimulus passed last month, Delta received $5.4 billion in grants and loans to pay its employees. It said it was also eligible for a $4.6 billion loan under the law, should it decide to take it. The airline added that it planned to cut schedules by 85 percent in the second quarter, in line with competitors like United Airlines, which reported a $2.1 billion quarterly loss on Monday.
Since early March, Delta had raised about $5.4 billion in capital, including a $3 billion loan, selling and leasing back $1.2 billion in aircraft and other measures. It also drew down an existing credit line of $3 billion and cut spending.Since early March, Delta had raised about $5.4 billion in capital, including a $3 billion loan, selling and leasing back $1.2 billion in aircraft and other measures. It also drew down an existing credit line of $3 billion and cut spending.
By the end of June, the airline expects to cut expenses in half, a saving of $5 billion, as it parks hundreds of aircraft and consolidates operations. Already, 37,000 of its 90,000 employees have taken short-tern unpaid leave. Delta also said it expects to save after cutting pay for its executives. By the end of June, the airline expects to cut expenses in half, a savings of $5 billion, as it parks hundreds of aircraft and consolidates operations. Already, 37,000 of its 90,000 employees have taken short-term unpaid leave. Delta also said it expected to save after cutting executives’ pay.
Early this winter, as dying patients flooded China’s hospitals and medical workers begged for protective gear on social media, some people in the country started asking why the government had suppressed information early on — and who should be held accountable.Early this winter, as dying patients flooded China’s hospitals and medical workers begged for protective gear on social media, some people in the country started asking why the government had suppressed information early on — and who should be held accountable.
But when the United States and other countries bungled their own responses to the virus, China’s propaganda machine saw an opportunity, Li Yuan of The Times reports.But when the United States and other countries bungled their own responses to the virus, China’s propaganda machine saw an opportunity, Li Yuan of The Times reports.
Chinese news outlets — relying on the West’s free flow of information — have used words like “purgatory” and “apocalypse” to describe the tragic hospital scenes in Italy and Spain. They have also run photos of British and American medical workers wearing garbage bags as protective gear. Chinese news outlets — relying on the West’s free flow of information — have used words like “purgatory” and “apocalypse” to describe the tragic hospital scenes in Italy and Spain. They have also published photos of British and American medical workers wearing garbage bags as protective gear.
Reports about similar miseries in China are called “rumors” and censored, and the state-run media’s overall message is that Western countries should copy China’s model. It’s all part of how the ruling Communist Party maintains a facade of positive news — and, by extension, its own legitimacy.Reports about similar miseries in China are called “rumors” and censored, and the state-run media’s overall message is that Western countries should copy China’s model. It’s all part of how the ruling Communist Party maintains a facade of positive news — and, by extension, its own legitimacy.
From Iraq to Venezuela, nations reliant on oil sales have seen the combination of the price collapse and the coronavirus pandemic create new threats of poverty and political instability.From Iraq to Venezuela, nations reliant on oil sales have seen the combination of the price collapse and the coronavirus pandemic create new threats of poverty and political instability.
Countries with economies that are heavily reliant on oil production are finding themselves in a dual crisis, and others have been forced to change policies that no longer make economic sense.Countries with economies that are heavily reliant on oil production are finding themselves in a dual crisis, and others have been forced to change policies that no longer make economic sense.
While Russia, Saudi Arabia and the United States — the biggest oil producers — have large financial cushions, the steep drop in demand the world was put under lockdown has upended everything. It was a possibility even veteran industry experts did not foresee. While Russia, Saudi Arabia and the United States — the biggest oil producers — have large financial cushions, the steep drop in demand as the world was put under lockdown has upended everything. It was a possibility even veteran industry experts did not foresee.
“No one imagined a crisis of this scope,” said Daniel Yergin, an expert on global energy and vice chairman of IHS Markit, a research firm. “This was in no scenario.”“No one imagined a crisis of this scope,” said Daniel Yergin, an expert on global energy and vice chairman of IHS Markit, a research firm. “This was in no scenario.”
In the United States, where oil prices fell below zero this week for the first time on record — meaning sellers had to pay customers to take oil off their hands — the glut is threatening severe economic pain in what had been a thriving domestic industry. The oversupply also has forced the Trump administration to negotiate with Russia and Saudi Arabia to curtail production.In the United States, where oil prices fell below zero this week for the first time on record — meaning sellers had to pay customers to take oil off their hands — the glut is threatening severe economic pain in what had been a thriving domestic industry. The oversupply also has forced the Trump administration to negotiate with Russia and Saudi Arabia to curtail production.
As millions of Americans lose jobs, take pay cuts, close businesses and absorb family members into their homes, they are being forced to rethink where their money goes. Even before the scramble for new jobs can begin, people are cajoling creditors, looking for gig work or simply cutting back to get through the first few disorienting weeks.
For some, the question is as simple as whether to spring for a jigsaw puzzle to keep from going corona crazy, and how much to tip the person who delivers it. But for many others, the stakes are far higher: a good credit score sacrificed to pay off certain bills before others, or ramen dinners rationed so that cash for groceries can be repurposed for an emergency fund, Tiffany Hsu of The Times reports.
More than half of lower-income adults in the United States say they will struggle to pay bills this month, compared with a quarter of their middle-income counterparts and 11 percent of those in the upper-income tier, according to a survey of nearly 5,000 adults by the Pew Research Center.
To cut costs, heaters have been turned down, clothing sales ignored and auto insurance policies canceled. Retail sales tumbled 8.7 percent in March, by far the largest monthly decline ever recorded. Plans to visit Disneyland, which is closed, turned into at-home re-enactments and long sessions with Disney Plus, Animal Crossing and Zoom. Rents are going unpaid as people spend weeks waiting for government aid to arrive.
Unable to film new commercials during the coronavirus pandemic, advertising agencies are turning to technologies that can seamlessly alter old footage, sometimes putting viewers in a position of doubting what they are seeing.
During Sunday’s episodes of “The Last Dance,” the ESPN documentary series about Michael Jordan and the Chicago Bulls, State Farm ran a commercial featuring expertly doctored footage of the longtime “SportsCenter” anchor Kenny Mayne.
In the ad, a much younger Mr. Mayne is seated at the “SportsCenter” desk in 1998. He reports on the Bulls’ sixth championship title — before taking a turn toward the prophetic.
“This is the kind of stuff that ESPN will eventually make a documentary about,” Mr. Mayne says. “They’ll call it something like ‘The Last Dance.’ They’ll make it a 10-part series and release it in the year 2020. It’s going to be lit. You don’t even know what that means yet.” As a vintage State Farm logo appears in the background, he adds, “And this clip will be used to promote the documentary in a State Farm commercial.”
The producers made the commercial by layering video of Mr. Mayne’s 60-year-old mouth onto footage of his 38-year-old face. To many viewers, the stunt provided a welcome moment of levity in depressing times. Others were made uneasy by the smoothness of the patch, describing it as a type of deepfake.
Ad agencies said similarly manipulated ads will become more common.
Australia will capitalize on historically low oil prices by spending $59 million to buy oil to bolster its fuel reserves, the country’s energy minister said. He said the oil would be initially kept in the United States as the Australian government explored local storage options. Australia is highly dependent on imports of liquid fuel from Asia and the Middle East.Australia will capitalize on historically low oil prices by spending $59 million to buy oil to bolster its fuel reserves, the country’s energy minister said. He said the oil would be initially kept in the United States as the Australian government explored local storage options. Australia is highly dependent on imports of liquid fuel from Asia and the Middle East.
General Motors said on Tuesday that it was shutting down its four-year-old car-sharing service, Maven, the latest such venture to close its doors. Maven, which allows customers to rent cars by the hour, has struggled to build a substantial following. It was forced to suspend services in March because of the coronavirus outbreak.General Motors said on Tuesday that it was shutting down its four-year-old car-sharing service, Maven, the latest such venture to close its doors. Maven, which allows customers to rent cars by the hour, has struggled to build a substantial following. It was forced to suspend services in March because of the coronavirus outbreak.
Lyft said Tuesday that it was withdrawing its financial guidance for 2020. The ride-hailing company had said it expected revenue of $4.5 billion to $4.6 billion this year, but demand has plummeted since early March.Lyft said Tuesday that it was withdrawing its financial guidance for 2020. The ride-hailing company had said it expected revenue of $4.5 billion to $4.6 billion this year, but demand has plummeted since early March.
Reporting was contributed by Isabella Kwai, Noam Scheiber, Niraj Chokshi, Rick Gladstone, Keith Bradsher, Edmund Lee, Clifford Krauss, Vindu Goel, Kate Conger, Neal E. Boudette, Mohammed Hadi, Alan Rappeport, Carlos Tejada, Mike Ives, Katie Robertson and Kevin Granville.Reporting was contributed by Isabella Kwai, Noam Scheiber, Niraj Chokshi, Rick Gladstone, Keith Bradsher, Edmund Lee, Clifford Krauss, Vindu Goel, Kate Conger, Neal E. Boudette, Mohammed Hadi, Alan Rappeport, Carlos Tejada, Mike Ives, Katie Robertson and Kevin Granville.